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Philippines – Economic strain of pandemic will hasten unilateral introduction of digital taxes

Philippines

Predictions

  • Economic strain of pandemic will hasten unilateral introduction of digital taxes, increasing compliance burden for multinationals
  • Government will look to capitalise on increased demand for online services and anticipated long-term growth of online shopping platforms
  • Acute need to broaden tax base due to rising deficit means digital tax bill will receive strong political backing

Event

Senator Ramon “Bong” Revilla Jr. introduced a bill on 19 May calling for the Senate Committee on Ways and Means to consider collecting taxes from multinational online streaming services and the digital economy more broadly. This came a day after Joey Salceda, who heads the committee, suggested firms including Netflix, Google, Facebook, Spotify and AirBnB, as well as online shopping platforms such as Lazada and Shopee, should pay VAT on local sales, electronic services and digital advertising hosted on their platforms.

Falanx Group Ltd (LON:FLX), through its subsidiaries, provides cyber defence and intelligence services to blue chip and government clients worldwide. It operates through Falanx Cyber Defence and Falanx Intelligence divisions.

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.